Is Nissan Leaf Still Eligible for Tax Credit?

A Nissan Leaf’s eligibility for a federal tax credit depends on whether the vehicle is new or used, its model year, and specific requirements for the buyer. The rules, governed by the Inflation Reduction Act of 2022, have created different standards for new and previously-owned vehicles. A Leaf that is ineligible when purchased new may qualify for a different credit once it enters the used market, so it is important to verify a specific vehicle’s status at the time of purchase.

Eligibility for the New Clean Vehicle Credit

The New Clean Vehicle Credit is worth up to $7,500 but is subject to vehicle and buyer criteria. As of 2025, new Nissan Leaf models are not eligible for this federal tax credit. This is because the vehicle does not meet the Inflation Reduction Act’s requirements for a certain percentage of battery components and minerals to be sourced from North America or specific trade partners.

For a new vehicle to qualify, its Manufacturer Suggested Retail Price (MSRP) must not exceed $55,000 for sedans like the Leaf. The vehicle must also have its final assembly in North America, a requirement the Leaf meets.

Buyer income limits also apply. The credit is unavailable if a buyer’s Modified Adjusted Gross Income (MAGI) in either the year of purchase or the preceding year exceeds $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers. A buyer can check a vehicle’s eligibility using its VIN on the U.S. Department of Energy’s website, fueleconomy.gov.

Eligibility for the Used Clean Vehicle Credit

A used Nissan Leaf has a clearer path to eligibility for the Used Clean Vehicle Credit. This credit is valued at 30% of the sale price, up to a maximum of $4,000. The sale price includes dealer-imposed fees but excludes government taxes and registration fees.

To qualify, the used Leaf must meet several requirements:

• The model year must be at least two years earlier than the current calendar year (e.g., a 2023 model or older if purchased in 2025).
• The purchase must be from a licensed dealer, as private sales do not qualify.
• The sale price cannot exceed $25,000.
• It must be the first transfer of the used vehicle to a qualified buyer since August 16, 2022.

The income limitations for the used credit are lower than for the new credit. A buyer’s MAGI cannot exceed $150,000 for married couples filing jointly, $112,500 for heads of households, or $75,000 for other filers. A taxpayer can only claim the Used Clean Vehicle Credit once every three years.

Information and Documentation Required to Claim a Credit

To claim a clean vehicle credit, a buyer must obtain a time-of-sale report from the seller at the time of purchase. This document, also known as Form 15400, Clean Vehicle Seller Report, contains the dealer’s name and tax ID, the vehicle identification number (VIN), battery capacity, date of sale, and the sale price. This information is used to complete IRS Form 8936, Clean Vehicle Credits.

Dealers must be registered with the IRS Energy Credits Online portal and submit the time-of-sale report electronically. Without this submission by the dealer, the IRS will reject any claim for the credit. The buyer must receive a copy of this submitted report from the dealer.

How to Claim the Tax Credit

A buyer has two options for claiming the tax credit. The first is to transfer the credit to the dealer at the point of sale. This acts as an immediate rebate, reducing the vehicle’s purchase price. The dealer provides the financial benefit upfront and is later reimbursed by the IRS.

To use this option, the buyer must attest to the dealer that they meet the income eligibility requirements. If a buyer transfers the credit but later finds their income exceeds the MAGI limit, they must repay the credit amount to the IRS when filing their tax return. The buyer must still file Form 8936 with their tax return to report the transfer.

The second option is to claim the credit on an annual tax return. The buyer pays the full purchase price and then files the completed Form 8936 with their Form 1040. The credit is nonrefundable, meaning it can reduce a taxpayer’s tax liability to zero, but any excess amount is not paid out as a refund.